Buy-to-let Mortgages

Investing in property

Buy-to-let mortgages made simple

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What is a BTL Mortgage?

A buy to let mortgage is a mortgage for a property that is intended to be rented out. These differ from traditional residential mortgages. They are two types of Buy-to-let mortgages – Commercial but-to-let mortgages and Consumer buy-to-let mortgages. At Glade Financial we can help you to arrange any type of buy-to-let mortgage, including buy-to-let portfolios, HMO, and commercial mortgages.

Buy to let mortgages explained

Buy-to-Let for Investors

A buy-to-let mortgage is when a person buys property as an investment, rather than a place to live. This type of mortgage is more likely to be interest-only and will require a higher deposit, typically at 25%. There is also a requirement for the rental income to cover the mortgage payment and other fees associated with the property. A buy-to-let interest-only mortgage will not pay off the initial capital owned, and the interest will therefore be the same throughout the term. Whether you are a first-time landlord or a seasoned property professional, we can advise you on the best available mortgage products currently on the market.

A Buy To Let Investment Through a Limited Company

More and more investors decide to purchase a property through a limited company. Getting the business structure right and running the buy-to-let property as a business might not be for everyone but it does have advantages, especially if you are a higher taxpayer. A limited company Buy To Let mortgage allows you to borrow the money needed for the purchase as a company, where the company is responsible for paying off the mortgage and not the individual. The limited company will also be the owner of the property.

Consumer Buy-to-Let

Consumer BTL is when a person becomes an ‘accidental landlord’. This is due to circumstances, rather than intentional investment. This can happen in several situations: Inheriting a property and the market is not right for the sale; Moving abroad for work and leaving the house to be rented out; Intending to sell but it is difficult to sell so the property is temporarily rented out. These mortgages are regulated mortgages (unlike investment BTL mortgages) and fall under the same regulations as residential mortgages. If you think you fall in this category, give us a call and we can discuss your requirements.

How We Can Help You Get Buy To Let Mortgage?

Whole of market

We have access to over 90 banks and specialist lenders.

Max 80% LTV

We could help you buy a property with as little as a 20% deposit.

Term from 2-years-fixed

We can advise on the best deals currently on the market.

Borrow up to £2m

Our lenders offer mortgages from £25,000 to £2m.

Free initial consultation

Free initial consultation and fixed fees to arrange a mortgage.

Tailored to individuals

Mortgages available with no minimum income, age up to 85 years old, or limited companies.

Buy-to-let calculators

BTL Rental Income Ratio Calculator

Calculate a minimum income required for you buy to let property investment.

Stamp Duty Land Tax Calculator

Calculate how much you would pay in Stamp Duty Land Tax based on the property price.

We work with over 90 lenders

From high-street banks to specialist finance providers

Common questions about Buy-to-Let mortgages

Most frequent questions regarding a buy to let mortgage

Buy to let

An investment buy-to-let mortgage is when a person buys property as an investment, rather than a place to live. This type of mortgage is more likely to be interest-only and will require a higher deposit, at least 20%. There is also a requirement for the rent to cover the mortgage payment and other fees associated with the property.

A consumer buy-to-let mortgage is when a person becomes an ‘accidental landlord’. This is due to circumstances, rather than intentional investment. This can happen in several situations: inheriting a property, moving abroad for work and leaving the house to be rented out, intending to sell but it is difficult to sell the property. These mortgages are regulated mortgages (unlike investment buy-to-let mortgages) and fall under the same regulations as residential mortgages. If you think you fall in this category, give us a call and we can discuss your requirements.

The minimum deposit for buy-to-let property is 20%. However, we would recommend a 25% deposit to achieve a better interest rate.

The rental cover ratio shows how much the rental income covers the mortgage payments. A rental cover ratio of 1.5 or 150% would cover the mortgage payment by 150%. The minimum rental income calculation is based on the annual stress rate (typically 5.5%) and depends on your taxpayer status. We have developed a simple Rental Income Calculator to give you indicative minimum rental income required to cover your mortgage payment.

Yes, you can purchase an investment property through a limited company, which is called a Special Purpose Vehicle. This limited company needs to be registered with Companies House, have at least one director and be a non-trading company. This means the company has no other purpose just to own the property and rent it out for profit. There are many tax benefits to owning a buy to let property through a limited company. You can read more in our blog post here.

An SPV, or a Special Purpose Vehicle, is a way of investing in property through a limited company. The company owns the properties and pays dividends to directors. The biggest advantage of holding properties in SPV is tax treatment. This allows a company to offset mortgage payments against income tax. It is also allowed to buy and sell shares in an SPV to raise capital, rather than sell the property itself. Find out more in our blog post here.

An HMO, or Houses in Multiple Occupation is a property rented to at least 3 tenants that share common areas, like kitchen and bathroom. A large HMO is when at least 5 tenants occupy a property. Many councils introduced HMO licences, so please check with your council about the rules and obligations as a landlord.

We would strongly recommend a landlord’s home insurance. The landlord insurance not only covers the walls, roof, permanent fixtures and fittings but also can cover the loss of rent in case of an insured event, change of locks if keys are lost or stolen or malicious damage caused by the tenants to the buildings.

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